Singapore  - The inflow of capital into Asia's real estate market is accelerating on longer-term investments coming off of a prolonged period of steady growth, a report said on Thursday.

Returns in the region are forecast to remain higher than the global average for the coming year, said the report compiled by KPMG, the FTSE group and the Asian Public Real Estate Association.

Japan continues to be viewed as an attractive market for the lower-risk investor, the report said. China is also producing attractive returns.

The slowdown in the US and European markets is unlikely to cause an immediate negative impact on Asia this year, the report said.

"Despite the current tightening of credit by banks, the deals will continue to happen, but they may take longer" and the cost higher, said Andrew Weir, in charge of property for KPMG in China and the Asia-Pacific region.

The subprime fallout elsewhere may act as a catalyst for further development of the region as a centre for property and investment management, he said.

Total investment in the region grew by more than 27 per cent in 2007 to 121 billion US dollars, the report said. (dpa)